WARNING: Unaffordability escalates as house prices set to RISE again in June
07-13-2017
HOUSE prices set to rise again as the number of first time buyers increases by 10 per cent.
By Emily Hodgkin
Property expert Phil Spencer’s top tips for moving home
Unaffordability in the housing market, which many currently find unaffordable, is set to rise even more.
Houses could jump in price by three per cent.
First time buyers will be hit even harder by the price hike of five per cent.
First time buyers looking to buy a house at the current average price of £234,794 will be looking to raise an extra £11,739.70.
New buyer and first-time buyer registrations have jumped up 9 per cent and 10 per cent respectively.
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House prices set to rise again in June as first time buyers increase by 10 per cent
However, many more new homes are on the market to supply the demand.
The amount of new stock has increased by 11 per cent in England and Wales, and by a huge 14 per cent in London.
Paul Smith, CEO of haart, the UK’s largest independent estate agent, said: “Our June data exemplifies a property market that is experiencing a boost in the wake of the General Election as house prices rise across England and Wales, in London and for first-time buyers.
“This is a far cry from predictions which are hinting around a potential housing crash, fostering homeowner negativity, and do nothing for a market which relies so heavily on consumer confidence.”
“Our recent survey of over 2,000 home owners found that Brexit has had no impact on over 75 per cent of Briton’s decisions to buy or sell a property,” Paul added.
“However unaffordability still remains too big a barrier for many, and this will not be resolved until we improve housing supply on a bigger scale than ever seen before.
“This can only be achieved when we resolve the gridlock that is house building, and introduce incentives for greater fluidity in the market.”
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Property news: Houses could jump in price by three per cent
While those looking to buy property may be on the rise, lenders have been warned to tighten up on lending rules.
The PRA warned lenders about the risk of increasing mortgage repayment terms, which could lead to more people having to pay back loans from post-retirement income.
Recently, Channel 4’s Dispatches revealed the secrets of Britain's new homes, and more specifically why there is a shortage in affordable housing.
Channel 4 reporter Antony Barnett visited three large proposed housing developments across the country to examine what homes are being built, and why there is such a shortage in affordable housing.